Shanghai Sample Of Low Rent Housing: How To "Cover The Bottom" Of Housing Security?

In July 2017, Shanghai launched two "rent only but not sell" homesteads across the country, which launched the "first shot" in the national rental residential land market, which was regarded as an attempt to adjust the land supply structure in the industry. In 2017, a total of 21 leasehold land were sold in Shanghai; in the beginning of 2018, another 5 were sold. Since then, leased land has become an important part of Shanghai's land market.

Low rent housing is one of the four in one housing security system in Shanghai. The scope of protection is low-income housing families with urban household registration in Shanghai. The security mode is divided into rent allocation and physical rent allocation, and the main mode is rent allocation.

Yang Yong, general manager of shenshourun investment company, introduced the "four in one" housing security system, including low rent housing, public rental housing, affordable housing and relocation housing. Low rent housing is the category of government security housing, which is the embodiment of the government's guarantee function. It is supported by financial funds and has a special distribution policy.

Yang Yong believes that low rent housing is specifically targeted at the bottom of the society. They are not able to buy affordable housing and rent public rental housing. They are the vulnerable groups that the government needs to pay attention to most. "This reflects that the municipal government, with the support of financial capacity, is increasingly concerned about the living security of social vulnerable groups, which is a manifestation of the people's government for the people."

The final exam of the 13th five year plan is approaching. Recently, Shanghai Housing Administration Bureau disclosed that during the "13th five year plan" period, Shanghai has strengthened the "four in one" housing security system of low rent housing, public rental housing, common property rights guarantee housing and acquisition and resettlement housing, effectively alleviating the housing difficulties of low-income families in the city. Among them, Shanghai's low rent housing has basically achieved the goal of ensuring the low-income families with low-income housing difficulties. The total number of benefited families is 133000, an increase of 20.9% compared with the end of the 12th Five Year Plan.

Shanghai style "bottom cover"

On the issue of accelerating the protection of housing for the people at the bottom of the society, Shanghai is determined to "cover the bottom".

On July 7, 2017, the 13th five year plan for housing development in Shanghai was released. For the first time, the public rental housing will be included in the "four in one" housing security system, and the "purchase and rent" housing system will be established. In September of the same year, Shanghai issued the implementation opinions on accelerating the cultivation and development of the housing rental market in Shanghai (hereinafter referred to as the Implementation Opinions), which includes six parts and 26 measures, clearly defines the goal of accelerating the cultivation and development of the housing rental market, puts forward the goal of "basically forming a housing rental market system with multi-agent participation, multi variety supply and standardized management by 2020", and demands to accelerate the promotion The supply side structural reform will greatly increase the supply of rental housing construction to meet the multi-level housing rental demand.

In terms of increasing the supply of rental housing, the implementation opinions pointed out that we should increase the supply of rental housing, improve the supply structure of housing, and provide physical security for the realization of the goal of renting houses by building new land, rebuilding commercial buildings according to regulations, guiding the construction of industrial parks, and carrying out the pilot project of building rental housing on collective construction land in a safe and orderly manner.

In terms of the location planning and layout of rental housing, the implementation opinions require that the rental housing should be arranged in areas where employment is concentrated, transportation is convenient, production and living is convenient, and demand for rental housing is concentrated, such as urban center or sub center service industry cluster area, University Science and technology R & D cluster area, high-end manufacturing industry cluster area of various industrial plates, suburban new town centers and rail transit superstructure.

According to the objectives of the 13th five year plan for Shanghai's housing development, 5500 hectares of housing land will be supplied during the 13th Five Year Plan period, of which 1700 hectares are for rental housing.

At the executive body level, because the low rent housing is dominated by the government finance, it is also undertaken by the company designated by the district government. For example, Shanghai Xufang (Group) Co., Ltd., Shanghai Hongfang (Group) Co., Ltd., Shanghai western enterprise (Group) Co., Ltd., and Shanghai North enterprise (Group) Co., Ltd. In addition to the government's responsibility for rental housing construction, Shanghai's three major state-owned asset platforms, Shanghai real estate (Group) Co., Ltd., Shanghai Urban Investment (Group) Co., Ltd., and Shanghai Shentong Metro Group Co., Ltd. have also been assigned the construction indicators of rental housing.

Current situation of low rent housing in Shanghai

Low rent housing is the earliest type of housing security system in Shanghai. Since 2000, Zhabei District and Changning District have been pilot projects, and then they have been spread in the whole city.

At present, the standard of low rent housing in Shanghai is 7 square meters (including) per capita living area. The standard of economic difficulties is that the per capita disposable income of families with three or more people does not exceed 3300 yuan (inclusive), and the per capita property does not exceed 120000 yuan (including). The standard for families with two or less people and poverty-stricken families with expenditure due to illness rises by 10%.

At the beginning of the implementation, the housing difficulty standard of low rent housing was less than 5 square meters per capita, which was relaxed to 7 square meters in 2003. At present, the total number of beneficiary families has reached 130000, and about 40000 families are currently enjoying the policy. Among them, 32000 families are guaranteed by rent allocation, and the remaining 8000 households are guaranteed by physical rental.

According to a research report of Shanghai City Real Estate Appraisal Co., Ltd., before 2010, there were only 700-800 households in Shanghai. Therefore, at that time, it was proposed that low rent housing should be guaranteed as much as possible. However, because a large number of families living in the same residential area gathered together, which brought great pressure to social management, so the policy was adjusted later.

After 2015, the scale of physical leasing has been strictly controlled. In fact, the supply and demand of affordable housing in Shanghai is unbalanced.

At the end of 2019, Shanghai Housing Administration Bureau issued a new version of the implementation rules of Shanghai low rent housing rent allocation management, which is valid until December 31, 2024.

On the other hand, the state-owned enterprises in Shanghai, which shoulder the responsibility of building and selling affordable housing, are also facing revenue problems. Shanghai urban construction (Group) Co., Ltd., its wholly-owned subsidiary, Shanghai Urban Construction Real Estate Development Co., Ltd. (hereinafter referred to as "Shanghai urban construction real estate") is an important subject of affordable housing construction in Shanghai, mainly responsible for the construction of affordable housing in Minhang, Qingpu and Jiading districts. The commercial residential buildings and office buildings developed by Shanghai urban construction real estate are mainly located in Shanghai, Wuxi and Nanchang. Due to the macro-control, in 2018, the contracted sales of Shanghai urban construction real estate were 2.27 billion yuan, a year-on-year decrease of 53.4%; and the carry forward income was 5.09 billion yuan, with a year-on-year growth of 13.8%. The income and profit growth of the current period is mainly due to the large number of commercial housing projects carried forward. However, affected by the decline in the sales of affordable housing, the contracted sales in the current period decreased significantly.

As of the first quarter of 2019, the company has 10 residential projects under construction, with a total planned investment of 61.56 billion yuan, an accumulated investment of 33.8 billion yuan, and a carried forward income of 18.65 billion yuan. Among them, there are 3 affordable housing projects, with a planned investment of 25.99 billion yuan, an investment of 19.18 billion yuan, and a carry over income of 13.88 billion yuan. In 2020, the real estate investment, especially the commercial housing project funds need to be withdrawn, and the company is facing certain investment expenditure pressure. In order to reduce the financial pressure, in August 2020, Shanghai urban construction group sold an office building with a total construction area of 49000 square meters in Xuhui District to tunnel shares with a price of 557 million yuan.

The choice of house price regulation?

Shanghai Housing Administration Bureau revealed that due to the long-term pressure of rising house prices in Shanghai, both public rental housing and rental housing will increase supply in the future.

Yang Yong believes that the level of rental housing should be divided into three levels: the first level is completely market-oriented, corresponding to the rental housing, namely R4 plot; the second level is the talents that the government hopes to leave, corresponding to the public rental housing with a slight subsidy; and the third level is the low rent housing, which is completely covered by the government.

Yang Yong pointed out that the current structure of Shanghai's rental market is basically reasonable. However, with a large number of fully market-oriented rental housing entering the market, public rental housing can gradually withdraw from the historical stage. One is that it takes up a lot of government financial resources (land grant subsidies and operation subsidies), the second is that the range of slightly preferential treatment is not high in fact, and the third is the recognition of admission qualification. There are certain sequelae in the later management.

According to a person familiar with the matter, local governments have paid a little less attention to the low rent housing groups in the past. Referring to the practice of major economies in granting subsidies to vulnerable groups, government finance should serve the most vulnerable residents.

Yan Yuejin, research director of the think tank center of the E-House Research Institute, analyzed that from 2000 to November this year, the average price of first-hand houses in Shanghai rose from 3327 yuan / m2 to 56276 yuan / m2, an increase of about 16.9 times; in 2015, the average price of first-hand houses in Shanghai was about 319.75 million yuan / m2, up 76% in five years.

At the same time, Shanghai's land price has also increased by 1.25 times in the past decade. In 2010, the average floor price of residential land in Shanghai was 5800.99 yuan / m2; from January to November 2020, the average floor price of residential land was 13050.12 yuan / m2.

On the one hand, there is "no speculation on housing" and on the other hand, it is necessary to improve housing security and expand the security area. Shanghai's real estate regulation still has a long way to go.